00:00:00.030 the broadcast is now starting all 00:00:02.21000:00:02.220 attendees are in listen-only mode 00:00:13.68000:00:13.690 good afternoon and good morning all of 00:00:16.76900:00:16.779 you welcome to this webinar systems and 00:00:20.01000:00:20.020 lunch the future of petrochemicals 00:00:21.42000:00:21.430 report from the IEA we are ready to get 00:00:25.20000:00:25.210 started but we like to hold for a couple 00:00:28.31900:00:28.329 of minutes to allow for more 00:00:29.51900:00:29.529 stakeholders and colleagues to to join 00:00:32.06900:00:32.079 the lunch webinar as well so if you 00:00:34.38000:00:34.390 could please halt with us for a couple 00:00:35.94000:00:35.950 of minutes we'll get started very 00:00:38.06900:00:38.079 shortly thank you 00:02:33.14000:02:33.150 good afternoon we will start the session 00:02:36.50000:02:36.510 on the future of petro chemical which 00:02:40.25000:02:40.260 the International age Energy Agency just 00:02:43.46000:02:43.470 produced my name is mr. Christopher I'm 00:02:46.07000:02:46.080 the new director for the dr4 ia on the 00:02:51.78900:02:51.799 sustainability technology and outlooks - 00:02:55.72900:02:55.739 and I'm here with the authors of the 00:02:58.55000:02:58.560 report which is araceli fernandez Perez 00:03:02.28900:03:02.299 Peter Levi and tae Yun Kim and we all 00:03:06.19900:03:06.209 together now for you to present and at 00:03:08.83900:03:08.849 the end of the presentation also be 00:03:11.30000:03:11.310 available for Question and Answer so I 00:03:14.03000:03:14.040 will start with a few slides to to give 00:03:16.81900:03:16.829 the background of the IEA as you know 00:03:19.85000:03:19.860 the International Energy Agency is an 00:03:22.88000:03:22.890 autonomous organization that works 00:03:25.40000:03:25.410 around the world and it's there to 00:03:28.19000:03:28.200 support accelerated clean energy 00:03:31.22000:03:31.230 transitions with unparalleled 00:03:33.41000:03:33.420 data rigorous analysis and real-world 00:03:36.35000:03:36.360 solution so this is a well-known feature 00:03:41.18000:03:41.190 for the IEA we have also in our mission 00:03:44.56900:03:44.579 today there are three further core 00:03:47.93000:03:47.940 priorities where we are working on which 00:03:50.75000:03:50.760 is the economic development that means 00:03:53.15000:03:53.160 supporting free markets to foster 00:03:55.55000:03:55.560 economic growth and eliminate energy 00:03:58.06900:03:58.079 poverty globally the second one being 00:04:02.37900:04:02.389 environmental awareness so analyzing 00:04:05.12000:04:05.130 policy options to offset the impact of 00:04:07.69900:04:07.709 energy production and use on the 00:04:09.65000:04:09.660 environment especially for tackling 00:04:11.87000:04:11.880 climate change and air pollution which 00:04:14.27000:04:14.280 is also relevant theme in this 00:04:15.92000:04:15.930 particular report and then engagement 00:04:18.65000:04:18.660 worldwide working closely with partner 00:04:21.65000:04:21.660 countries especially with emerging 00:04:23.96000:04:23.970 economies to find solution to share 00:04:26.57000:04:26.580 energy and environment concerns so the 00:04:30.20000:04:30.210 whole ia clover family includes now 30 00:04:33.26000:04:33.270 member states or member countries as 00:04:35.71000:04:35.720 well as Association and partner 00:04:39.83000:04:39.840 countries with which is working closely 00:04:42.17000:04:42.180 on this area 00:04:48.98000:04:48.990 the ia also then engages with numbers 00:04:53.54000:04:53.550 countries around the globe to collect 00:04:56.34000:04:56.350 energy data and information so you can 00:04:58.65000:04:58.660 see it on the last slide in which 00:05:01.50000:05:01.510 country it's the members the partners 00:05:03.42000:05:03.430 the Association and the data coverage 00:05:10.22000:05:10.230 for today you will see that the ia 00:05:14.70000:05:14.710 launched last year in fact what we call 00:05:18.21000:05:18.220 the future of series which in 2017 and 00:05:22.14000:05:22.150 the main objective is to look what we 00:05:25.29000:05:25.300 call key lines including energy these 00:05:30.30000:05:30.310 are mainly area which are important for 00:05:33.06000:05:33.070 the energy system but in our view they 00:05:36.63000:05:36.640 don't get enough attention as they 00:05:38.67000:05:38.680 deserve given that they have a few 00:05:42.93000:05:42.940 future or current important role to play 00:05:46.14000:05:46.150 in the energy system and in the economy 00:05:49.20000:05:49.210 so we started with these series in 2017 00:05:52.62000:05:52.630 and we have already published relatively 00:05:56.67000:05:56.680 recently a publication on the future of 00:05:58.98000:05:58.990 trucks which was presented last year 00:06:02.42000:06:02.430 then one on cooling focusing on air 00:06:05.79000:06:05.800 conditioning and now as you will see the 00:06:08.88000:06:08.890 future of petrochemicals which we also 00:06:11.28000:06:11.290 thought is a real important area where 00:06:14.94000:06:14.950 we haven't had enough thought or data or 00:06:18.36000:06:18.370 which is worth now and really presented 00:06:20.85000:06:20.860 in this report today with that I pass 00:06:24.48000:06:24.490 the floor to Araceli thank you very much 00:06:28.92000:06:28.930 and I just wanted to thank all the 00:06:32.28000:06:32.290 different colleagues that participated 00:06:35.13000:06:35.140 in this in this piece of analysis over 00:06:37.20000:06:37.210 the last year which on the three 00:06:39.12000:06:39.130 colleagues that we will presenting today 00:06:40.62000:06:40.630 many of them participated but couldn't 00:06:43.71000:06:43.720 join us today 00:06:45.03000:06:45.040 and also as well all the different 00:06:47.37000:06:47.380 terminal stakeholders that have been 00:06:48.84000:06:48.850 supporting our work through different 00:06:50.43000:06:50.440 mediums workshops webinars and different 00:06:53.19000:06:53.200 engagement opportunities as well as 00:06:55.29000:06:55.300 information so 00:06:57.99000:06:58.000 part of the of the webinar is going to 00:07:00.18000:07:00.190 focus on putting the petrochemical 00:07:01.92000:07:01.930 sector in context today related to how 00:07:05.73000:07:05.740 basically it interacts with society with 00:07:08.88000:07:08.890 the energy system and as well with with 00:07:11.34000:07:11.350 environment so set of chemical products 00:07:15.90000:07:15.910 are all around us from the everyday 00:07:18.87000:07:18.880 items to components of transportation 00:07:21.12000:07:21.130 and infrastructure our modern society is 00:07:23.70000:07:23.710 highly dependent on petrochemicals 00:07:25.88000:07:25.890 things that you find around common 00:07:28.83000:07:28.840 office many personal items such as 00:07:30.99000:07:31.000 toiletries medical equipment which you 00:07:33.15000:07:33.160 tell devices and clothing also many 00:07:35.70000:07:35.710 building materials such as PVC plastic 00:07:38.07000:07:38.080 pipes and windows products that are 00:07:41.49000:07:41.500 integral to our food supply are also 00:07:43.88000:07:43.890 integrated or related to petrochemical 00:07:46.05000:07:46.060 products for instance around half of the 00:07:48.69000:07:48.700 world's food production is facilitated 00:07:50.82000:07:50.830 by synthetic nitrogen fertilizers nearly 00:07:53.70000:07:53.710 all of which are made of from oil and 00:07:56.82000:07:56.830 gas which on the production phase the 00:07:59.64000:07:59.650 world is consuming increasing quantities 00:08:01.80000:08:01.810 of plastic packaging as well and for 00:08:04.77000:08:04.780 instance it was recently estimated that 00:08:06.51000:08:06.520 around 1 million bottles of plastic are 00:08:10.17000:08:10.180 consumed every minute many elements of 00:08:14.64000:08:14.650 the transportation system also rely on 00:08:17.13000:08:17.140 petrochemical products tiles batteries 00:08:19.56000:08:19.570 many other vehicle components also made 00:08:22.14000:08:22.150 of synthetic rubber and plastic 00:08:25.55000:08:25.560 petrochemicals will also have or be 00:08:28.95000:08:28.960 instrumental in developing many of the 00:08:31.46900:08:31.479 advanced materials that will support the 00:08:33.20900:08:33.219 energy transition such as those using 00:08:35.55000:08:35.560 winter event blades or solar panels 00:08:38.89900:08:38.909 despite these products being all around 00:08:41.52000:08:41.530 us the petrochemical sector is one of 00:08:43.82900:08:43.839 the key blind spots in the global energy 00:08:45.45000:08:45.460 system as Michelle was highlighting 00:08:48.09000:08:48.100 before and this publication like others 00:08:50.79000:08:50.800 before that have been mentioned within 00:08:52.59000:08:52.600 this series I really trying to shed 00:08:54.78000:08:54.790 light on these topics that deserves more 00:08:57.57000:08:57.580 attention but having been paid the level 00:09:01.35000:09:01.360 of of the analytical attention yet 00:09:06.32000:09:06.330 petrochemicals having growing fast and 00:09:09.07900:09:09.089 and 00:09:11.00000:09:11.010 millennium several mag materials such as 00:09:12.98000:09:12.990 aluminium cement who broadly in line 00:09:16.22000:09:16.230 with GDP China's wealth after the 00:09:18.83000:09:18.840 Millennium led to accelerating demand 00:09:21.17000:09:21.180 for these materials to fuel a wave of 00:09:23.60000:09:23.610 construction and infrastructure projects 00:09:25.43000:09:25.440 and support a growing manufacturing base 00:09:28.78000:09:28.790 plastics which is a key product a key 00:09:31.73000:09:31.740 group of products related to 00:09:34.37000:09:34.380 petrochemicals demand high grown faster 00:09:37.37000:09:37.380 than any other group of bulk materials 00:09:39.77000:09:39.780 production volumes have increased more 00:09:42.29000:09:42.300 than tenfold since 1970 and the man has 00:09:45.26000:09:45.270 more than doubled since the Millennium 00:09:46.96000:09:46.970 this is explained by the fact that since 00:09:49.58000:09:49.590 Amos is the middle of the last century 00:09:51.14000:09:51.150 plastics have become assistive for 00:09:54.89000:09:54.900 several others traditional materials 00:09:56.45000:09:56.460 particularly in the packaging ultimately 00:09:58.37000:09:58.380 and construction and new sectors as we 00:10:00.98000:10:00.990 were discussing before acquiring grain 00:10:02.54000:10:02.550 in our society today this is also 00:10:05.48000:10:05.490 because plastics are often cheaper and 00:10:07.28000:10:07.290 the rest italic disability means that 00:10:09.53000:10:09.540 they can offer highly tailor material 00:10:11.57000:10:11.580 properties for a given application if we 00:10:17.12000:10:17.130 stick with plastics and look a bit in 00:10:19.43000:10:19.440 more detail to this segment of demand 00:10:21.05000:10:21.060 this group of materials will continue to 00:10:23.24000:10:23.250 be a key demand driver for this sector 00:10:26.86000:10:26.870 advanced economies such as United States 00:10:29.33000:10:29.340 Canada Korea consume up to twenty times 00:10:32.18000:10:32.190 as much plastic as developing economies 00:10:34.19000:10:34.200 such as India and many countries in 00:10:36.32000:10:36.330 Africa plastic demand is driven in part 00:10:39.14000:10:39.150 by domestic manufacturing industries but 00:10:41.66000:10:41.670 also by store markets for instance in in 00:10:43.97000:10:43.980 2016 Shelby Arabia and the United States 00:10:47.03000:10:47.040 we're the largest exporters of 00:10:48.38000:10:48.390 polyethylene I keep plastic resin 00:10:50.36000:10:50.370 juiced across a range of products and 00:10:52.10000:10:52.110 Industry so with this with this context 00:10:57.52000:10:57.530 of expected growth the petrochemical 00:11:01.79000:11:01.800 sector when we look at how it's linked 00:11:04.01000:11:04.020 to the energy systems is the largest 00:11:05.93000:11:05.940 industrial user of oil and gas they 00:11:08.66000:11:08.670 account petrochemicals today for 14 00:11:11.57000:11:11.580 percent of global oil demand 00:11:13.25000:11:13.260 ranking second behind transport also in 00:11:16.49000:11:16.500 terms of gas petrochemicals currently 00:11:18.17000:11:18.180 represents 8 percent of the gas demand 00:11:20.54000:11:20.550 globally 00:11:25.24000:11:25.250 half of the chemical sector today energy 00:11:29.84000:11:29.850 total energy inputs relate to feedstock 00:11:32.60000:11:32.610 so half of the total energy inputs 00:11:34.12900:11:34.139 they're going into this specific sector 00:11:36.37900:11:36.389 I'm related to fuels that are used as 00:11:39.13900:11:39.149 material inputs to confirm the final 00:11:41.00000:11:41.010 products from this more than 90 percent 00:11:45.41000:11:45.420 come from oil and gas so in this diagram 00:11:47.93000:11:47.940 we're showing how oil gas but also call 00:11:50.78000:11:50.790 I used as raw materials to produce 00:11:53.12000:11:53.130 different primary chemicals that are 00:11:54.76900:11:54.779 then converted into farther downstream 00:11:56.21000:11:56.220 chemical commodities and ultimately 00:11:58.79000:11:58.800 consumer goods such as fertilizers 00:12:00.55000:12:00.560 plastics rubber etc oil is the 00:12:04.18900:12:04.199 predominant feedstock for what we call 00:12:05.90000:12:05.910 high-value chemicals which are the main 00:12:07.85000:12:07.860 precursors of plastic that you can see 00:12:10.63900:12:10.649 as dark blue in the diagram whereas the 00:12:13.49000:12:13.500 gas and coal I used typically for 00:12:15.19900:12:15.209 ammonia and methanol all together 00:12:17.72000:12:17.730 high-value chemicals ammonia and 00:12:19.79000:12:19.800 methanol accounted for around two-thirds 00:12:21.74000:12:21.750 of a total energy demand that goes into 00:12:24.53000:12:24.540 the chemical sector if we look at some 00:12:29.30000:12:29.310 of the regional differences in how the 00:12:30.71000:12:30.720 petrochemical industry is distributed 00:12:33.43900:12:33.449 across regions we can really say that no 00:12:35.50900:12:35.519 one-size-fits-all asia-pacific 00:12:40.51900:12:40.529 particularly China dominates global 00:12:42.43900:12:42.449 primary chemical production accounting 00:12:44.30000:12:44.310 for half of the world complete output 00:12:47.94900:12:47.959 Europe North America and the Middle East 00:12:50.30000:12:50.310 are also important regions together 00:12:51.88900:12:51.899 accounting for most of the rest if you 00:12:55.10000:12:55.110 look at how primary chemical production 00:12:56.87000:12:56.880 translates into feedstock used then we 00:13:00.59000:13:00.600 can also see that there are significant 00:13:02.12000:13:02.130 differences across regions and with the 00:13:05.54000:13:05.550 different sources of feedstock we 00:13:08.12000:13:08.130 induced to produce those those chemicals 00:13:11.17000:13:11.180 if we focus now in the four key regions 00:13:14.44900:13:14.459 in terms of size North America Europe 00:13:16.34000:13:16.350 Middle East and Asia Pacific then we can 00:13:19.73000:13:19.740 see that along with the Middle East the 00:13:21.80000:13:21.810 United States has a feedstock advantage 00:13:24.29000:13:24.300 in its access to low-cost 00:13:25.79000:13:25.800 ethan or when to its abundant natural 00:13:27.86000:13:27.870 gas supplies and the shale revolution in 00:13:30.86000:13:30.870 contrast asia pacific and also europe 00:13:33.01900:13:33.029 rely predominantly on naphtha where the 00:13:36.13900:13:36.149 spread between the prices of natural gas 00:13:37.81900:13:37.829 liquids 00:13:38.31000:13:38.320 and crude is large this puts this region 00:13:40.50000:13:40.510 has a pizza disadvantage China 00:13:43.29000:13:43.300 constitutes archaea dire needs choice of 00:13:45.42000:13:45.430 pizza for ammonia and methanol 00:13:46.80000:13:46.810 production which is the use of coal and 00:13:49.52000:13:49.530 around a quarter of primary chemical 00:13:51.96000:13:51.970 production from asia-pacific and 00:13:54.18000:13:54.190 specifically China is based on on call 00:13:59.69000:13:59.700 these differences that we describe in 00:14:02.07000:14:02.080 terms of the fixed of shortages to 00:14:03.84000:14:03.850 produce these levels of primary chemical 00:14:05.25000:14:05.260 I own in part to this regional cost 00:14:09.02000:14:09.030 differences as well different choices on 00:14:13.35000:14:13.360 feedstock across regions are reflection 00:14:15.27000:14:15.280 of the big contribution of feedstock 00:14:16.80000:14:16.810 costs the production cost as well as the 00:14:19.23000:14:19.240 differences that we that are observed in 00:14:21.21000:14:21.220 feedstock availability at an 00:14:22.98000:14:22.990 advantageous cost in this light we are 00:14:25.59000:14:25.600 displaying the simplified levelized cost 00:14:27.78000:14:27.790 of high-value chemicals that include 00:14:30.00000:14:30.010 ethylene propylene and aromatics for 00:14:32.76000:14:32.770 different food stocks and across 00:14:33.84000:14:33.850 different regions the Middle East and 00:14:35.91000:14:35.920 the u.s. remained the regions who are 00:14:37.35000:14:37.360 producing these commodities from evening 00:14:39.54000:14:39.550 is more advantages whereas naphtha based 00:14:42.06000:14:42.070 production is less economical that 00:14:43.50000:14:43.510 dominance in other regions due to their 00:14:45.21000:14:45.220 limited access to lighter feedstock the 00:14:48.93000:14:48.940 feedstocks choice doesn't not only 00:14:50.55000:14:50.560 impact cost but also process yields or 00:14:53.67000:14:53.680 the amount said in other words the 00:14:55.71000:14:55.720 amount that of product that can be 00:14:57.39000:14:57.400 obtained per unit of being consumed 00:15:00.05000:15:00.060 typically higher overall deals are 00:15:02.37000:15:02.380 obtained at the expense of a balanced 00:15:04.08000:15:04.090 product profile while even offers the 00:15:06.66000:15:06.670 higher juice on a per ton of high-value 00:15:08.79000:15:08.800 chemical products among other filter 00:15:11.28000:15:11.290 options for sting cracking if the 00:15:12.96000:15:12.970 leaders at the same time a mix of 00:15:14.52000:15:14.530 high-value chemicals containing around 00:15:16.53000:15:16.540 80 percent of ethylene which means that 00:15:19.19000:15:19.200 the final mix of products could be more 00:15:21.99000:15:22.000 rich in ethylene and then other options 00:15:23.97000:15:23.980 with or might be needed to really 00:15:26.22000:15:26.230 compensate for that distribution of 00:15:28.29000:15:28.300 products I'm gonna make a stop here and 00:15:32.76000:15:32.770 we are gonna discuss a little bit what 00:15:34.77000:15:34.780 are the interactions and the impacts 00:15:36.42000:15:36.430 from the earth supply side of things at 00:15:39.09000:15:39.100 this point I'm gonna give the floor to 00:15:40.89000:15:40.900 my colleague Teijin Kim which has been 00:15:44.22000:15:44.230 also participating and polarizing this 00:15:47.07000:15:47.080 I'm sorry with growing demand for 00:15:51.39000:15:51.400 petrochemical product 00:15:52.53000:15:52.540 oil companies especially the refining 00:15:54.33000:15:54.340 industry I increasingly of pending in 00:15:56.61000:15:56.620 the petrochemical is through refining 00:15:59.40000:15:59.410 petrochemical integration the current 00:16:02.13000:16:02.140 interest in petrochemical instigation 00:16:04.02000:16:04.030 reflect a preoccupation in the deepening 00:16:06.27000:16:06.280 the statistical higher and resilient 00:16:09.00000:16:09.010 sources of become higher 00:16:11.34000:16:11.350 in recent years margins from selling 00:16:14.19000:16:14.200 transport pure such as gathering and DJ 00:16:16.44000:16:16.450 are narrowing down and selling 00:16:18.45000:16:18.460 petrochemical feedstock is not very 00:16:20.70000:16:20.710 profitable for companies however as 00:16:23.82000:16:23.830 shown in the chart producing 00:16:25.65000:16:25.660 petrochemicals can offer better margins 00:16:28.02000:16:28.030 than yours offering a better sense for 00:16:30.75000:16:30.760 companies to raise profitability and 00:16:33.02000:16:33.030 resilient while oil demand for other 00:16:36.12000:16:36.130 sectors is increasingly challenged by a 00:16:38.73000:16:38.740 combination of efficiency improvement 00:16:40.50000:16:40.510 pure switching and electrification 00:16:43.13000:16:43.140 demands prospects for petrochemicals 00:16:45.81000:16:45.820 remain relatively robust set of 00:16:48.54000:16:48.550 chemicals can also provide a good hedge 00:16:51.47000:16:51.480 against the list of a possible 00:16:53.94000:16:53.950 construction of oil demand in a row 00:16:55.68000:16:55.690 carbon scenarios such as a clean tech 00:16:57.60000:16:57.610 transition area which explains one of 00:17:00.51000:17:00.520 the motivations behind the recent 00:17:02.01000:17:02.020 expansion and the defining petrochemical 00:17:06.03000:17:06.040 integration can also open some other 00:17:08.67000:17:08.680 operational additional benefits however 00:17:12.86000:17:12.870 the labor and types of integration 00:17:16.17000:17:16.180 varies widely by regions for example in 00:17:20.49000:17:20.500 the United States and the Middle East 00:17:21.96000:17:21.970 where there are readily available supply 00:17:24.63000:17:24.640 over ten years the this direct stream to 00:17:28.71000:17:28.720 petrochemical out is a prevailing option 00:17:30.83000:17:30.840 this is more like the business 00:17:32.82000:17:32.830 integration many oil companies who 00:17:35.55000:17:35.560 produce NGS have also invested in 00:17:38.42000:17:38.430 chemical production facilities 00:17:40.20000:17:40.210 facilities but there's no operational 00:17:43.29000:17:43.300 overlap between facilities in other 00:17:45.99000:17:46.000 regions where availability of NGS is 00:17:48.53000:17:48.540 limited the case of operational 00:17:51.09000:17:51.100 integration is strong China is an 00:17:54.63000:17:54.640 interesting example in this regard 00:17:57.47000:17:57.480 has the height to develop refining 00:17:59.93000:17:59.940 petrochemical integration globally many 00:18:02.99000:18:03.000 of the refining and petrochemical 00:18:04.07000:18:04.080 facilities are sitting next to each 00:18:06.44000:18:06.450 other who are closely integrated and in 00:18:09.71000:18:09.720 China there are also an interesting 00:18:12.28900:18:12.299 example of so-called divorce integration 00:18:14.53900:18:14.549 where petrochemical companies are moving 00:18:17.08000:18:17.090 upstream rather than be finally moving 00:18:19.43000:18:19.440 downstream and there are even more 00:18:21.95000:18:21.960 ambitious schemes being pursued in the 00:18:23.99000:18:24.000 Middle East to bypass the refining 00:18:26.57000:18:26.580 operation entirely and produce chemicals 00:18:29.18000:18:29.190 directly from the crude oil some garam 00:18:32.81000:18:32.820 Qin sabbith recently announced a larger 00:18:35.63000:18:35.640 scale crude oil to chemical project or 00:18:38.44000:18:38.450 400,000 barrels per day capacity it is 00:18:42.02000:18:42.030 also developing a more ambitious schemes 00:18:44.72000:18:44.730 aiming 70 80 % of chemical it whatever 00:18:49.37000:18:49.380 libraries of types of education there 00:18:51.56000:18:51.570 are what is sure is the role of oil 00:18:54.44000:18:54.450 companies in the petrochemical sector is 00:18:57.20000:18:57.210 said to increase over time 00:19:02.47000:19:02.480 petrochemicals can also take on 00:19:04.54900:19:04.559 environment at all the chemical sector 00:19:07.13000:19:07.140 is the largest industrial energy 00:19:09.28900:19:09.299 consumer ahead of iron and steel and 00:19:11.81000:19:11.820 cement it accounts for around 10 percent 00:19:15.38000:19:15.390 of total final energy consumption and 00:19:17.72000:19:17.730 almost 30 percent of industrial final 00:19:20.45000:19:20.460 energy consumption however the sector is 00:19:23.51000:19:23.520 already the third largest sources of 00:19:26.09000:19:26.100 industrial co2 emissions this is because 00:19:29.03000:19:29.040 the modern hypo is energy input is used 00:19:31.73000:19:31.740 as feedstock then therefore wrapped into 00:19:34.85000:19:34.860 problems there are two takeaway from 00:19:38.39000:19:38.400 this picture first 00:19:40.34000:19:40.350 although P the stag input do not 00:19:42.74000:19:42.750 contribute to increase in co2 emissions 00:19:44.96000:19:44.970 as they allow in the product there is a 00:19:48.02000:19:48.030 sphere a chance for these emissions to 00:19:50.51000:19:50.520 be released during the use of certain 00:19:53.06000:19:53.070 chemical product so effective management 00:19:55.94000:19:55.950 of plastic waste or fertilizer waste is 00:19:58.76000:19:58.770 very much important to avoid any 00:20:01.36000:20:01.370 environmentally negative impact and 00:20:03.95000:20:03.960 second all those of the sector is the 00:20:06.47000:20:06.480 third largest here is the sector emit 00:20:08.89900:20:08.909 around 1.5 gigatron of you 00:20:11.31000:20:11.320 two per year or 18% of intellectual 00:20:14.76000:20:14.770 tensions reducing these emissions is 00:20:17.76000:20:17.770 critical to minimize the sector's 00:20:19.80000:20:19.810 environmental toll on the economy 00:20:25.40000:20:25.410 thank you very much taejun and so with 00:20:28.74000:20:28.750 that we are going to enter into the next 00:20:30.87000:20:30.880 section of the presentation which is 00:20:33.81000:20:33.820 basically to go from the current 00:20:36.30000:20:36.310 situation to starting exploring 00:20:38.61000:20:38.620 different futures the first section 00:20:42.30000:20:42.310 relates to the exploration of the what 00:20:44.82000:20:44.830 we call the reference technology 00:20:46.11000:20:46.120 scenario which is basically what the 00:20:48.00000:20:48.010 current trajectory for the petrochemical 00:20:50.01000:20:50.020 sector sector would be starting with 00:20:54.81000:20:54.820 wisdom and we expect demand for plastics 00:20:57.63000:20:57.640 one of the key demand drivers for the 00:20:59.91000:20:59.920 petrochemical sector as with as we've 00:21:01.86000:21:01.870 outlined to remain relatively robust 00:21:05.36000:21:05.370 with production for key thermoplastics 00:21:07.89000:21:07.900 more than doubling between 2020 2010 and 00:21:10.68000:21:10.690 2050 00:21:11.63000:21:11.640 especially as developing countries 00:21:13.62000:21:13.630 increase their population and wealth 00:21:15.09000:21:15.100 these materials will be increasingly 00:21:17.01000:21:17.020 demanded particularly for packaging and 00:21:18.93000:21:18.940 construction on a per capita basis the 00:21:22.62000:21:22.630 demand for these plastics increases by 00:21:24.27000:21:24.280 more than 50 percent and to complement 00:21:27.66000:21:27.670 the analysis we've also undertaken or 00:21:31.38000:21:31.390 developed a highly man science basically 00:21:34.53000:21:34.540 to perform some sensitivity analysis 00:21:36.63000:21:36.640 around the impacts that different levels 00:21:38.76000:21:38.770 of demand could have in terms of 00:21:40.20000:21:40.210 technology choices but also in terms of 00:21:42.63000:21:42.640 energy energy demand and that high 00:21:46.50000:21:46.510 demand violent the results around us 00:21:48.99000:21:49.000 will be also by level on the website 00:21:51.45000:21:51.460 very shortly in our very scenario only 00:21:56.52000:21:56.530 man growth is fueled by four key drivers 00:21:59.19000:21:59.200 and shipping 00:22:02.06000:22:02.070 aviation growth rates and the largest 00:22:05.43000:22:05.440 being petrochemicals all demand rises 00:22:08.34000:22:08.350 around 10 million barrels per day by 00:22:11.58000:22:11.590 2030 globally and we expect that from 00:22:15.45000:22:15.460 that first petal of petrochemicals as 00:22:18.54000:22:18.550 certainly would be the main contributor 00:22:20.49000:22:20.500 with more than 1/3 to that to that 00:22:24.00000:22:24.010 increase and increasing or representing 00:22:27.12000:22:27.130 more than half of the growth that we 00:22:28.89000:22:28.900 expect by 2050 looking at again what the 00:22:35.70000:22:35.710 regional impact of this expected growth 00:22:38.76000:22:38.770 would be in terms of where the main 00:22:41.10000:22:41.110 producing the two centers would be and 00:22:46.22000:22:46.230 China and the US see the largest Newton 00:22:49.41000:22:49.420 capacity addition as a result of her 00:22:51.51000:22:51.520 Fifth Circuit Vantage as with discussed 00:22:53.22000:22:53.230 and a strong source of domestic demand 00:22:55.35000:22:55.360 especially in the case of China 00:22:57.72000:22:57.730 whereas in terms of long term growth 00:22:59.64000:22:59.650 that would be led by Asia particularly 00:23:02.37000:23:02.380 China and also the Middle East by 2050 00:23:05.97000:23:05.980 Asia Pacific retained fill its position 00:23:08.73000:23:08.740 of the world largest chemical producing 00:23:11.67000:23:11.680 region by far and I would like to note 00:23:14.91000:23:14.920 here that in this in this diagram shown 00:23:17.25000:23:17.260 the graph that relates to the Asia 00:23:19.38000:23:19.390 Pacific region which is shown in Ingrid 00:23:21.69000:23:21.700 with a red label on the right has a 00:23:25.17000:23:25.180 different scale which we truly intend 00:23:27.24000:23:27.250 the rest of the graphs which really 00:23:28.41000:23:28.420 indicates two different order of 00:23:30.75000:23:30.760 magnitude in terms of the size compared 00:23:32.64000:23:32.650 to other regions 00:23:35.72000:23:35.730 again translating this these levels of 00:23:39.30000:23:39.310 production or capacity additions in this 00:23:41.76000:23:41.770 case to feedstock and focusing on the on 00:23:45.30000:23:45.310 the key four regions and that we've been 00:23:48.12000:23:48.130 highlighting and then we can see that in 00:23:52.41000:23:52.420 terms of high-value chemicals again the 00:23:54.12000:23:54.130 main precursors for plastics ethan 00:23:56.37000:23:56.380 feedstock the consumption of fish and 00:23:59.16000:23:59.170 pizza for high-value chemicals will grow 00:24:01.77000:24:01.780 by 70 percent by 2030 in favor regions 00:24:06.42000:24:06.430 and which basically are even being 00:24:08.91000:24:08.920 displayed in in light blue in the in the 00:24:11.64000:24:11.650 graph this is impaired due to demand for 00:24:15.06000:24:15.070 exports to other regions such as Europe 00:24:17.06000:24:17.070 but whoever in regions were continuing 00:24:20.22000:24:20.230 strong growth in the long term or the 00:24:23.61000:24:23.620 growth will continue strongly in the 00:24:25.86000:24:25.870 long term then those regions would rely 00:24:27.81000:24:27.820 mostly on on NASA and that is mainly 00:24:30.18000:24:30.190 related to the fact that is in supply 00:24:33.42000:24:33.430 as a result of flattening natural gas 00:24:35.28000:24:35.290 liquids outfits from the US shale and 00:24:38.09000:24:38.100 also we expect a stagnation of title 00:24:41.61000:24:41.620 production in the second half of day of 00:24:43.26000:24:43.270 the 2020s in the analysis in the report 00:24:45.87000:24:45.880 you would also see that we've done a 00:24:47.61000:24:47.620 specific assessment looking at whether 00:24:51.09000:24:51.100 these considerations around the 00:24:52.56000:24:52.570 availability of of evening could be more 00:24:57.30000:24:57.310 optimistic and what would be the impact 00:24:59.19000:24:59.200 as well and and certainly I mean the 00:25:02.04000:25:02.050 trigger for this was the the appetite of 00:25:03.87000:25:03.880 the petrochemical industry for for light 00:25:05.73000:25:05.740 feedstock for sure 00:25:08.39000:25:08.400 looking at ammonia as another example 00:25:11.22000:25:11.230 within the primary chemical production 00:25:13.02000:25:13.030 then natural gas still remains the the 00:25:18.54000:25:18.550 major fistic and it really observes the 00:25:21.24000:25:21.250 majority of the growth in terms of new 00:25:23.46000:25:23.470 capacity additions that we see in dark 00:25:27.39000:25:27.400 blue you can see the use of coal 00:25:29.12000:25:29.130 especially in China which is shown in 00:25:31.56000:25:31.570 the asia-pacific graph and as you can 00:25:33.96000:25:33.970 see this stagnates over time with the 00:25:36.06000:25:36.070 capacity additions reinvesting being 00:25:38.34000:25:38.350 based on on gas and with that we are 00:25:42.60000:25:42.610 gonna start this section around the 00:25:44.46000:25:44.470 alternative future that we'll also 00:25:46.92000:25:46.930 explore and I'm going to give the the 00:25:48.81000:25:48.820 floor to my colleague pizza divine that 00:25:50.79000:25:50.800 also participated very intensively in 00:25:53.16000:25:53.170 the report and it's one of the coffers 00:25:54.80000:25:54.810 Thank You Araceli and and as Araceli 00:25:58.05000:25:58.060 said there I'm going to go through an 00:25:59.55000:25:59.560 alternative more sustainable path way 00:26:02.13000:26:02.140 that the petrochemical sector can can 00:26:04.56000:26:04.570 follow and we call this the clean 00:26:05.76000:26:05.770 technology scenarios or the CTS relative 00:26:09.18000:26:09.190 to the base scenario the reference 00:26:11.49000:26:11.500 technology scenario or RTS the CTS is 00:26:14.79000:26:14.800 quite a different approach that we take 00:26:17.03000:26:17.040 instead of projecting forward current 00:26:19.56000:26:19.570 trends we work backwards from where we 00:26:21.72000:26:21.730 want to get to and where we want to get 00:26:25.23000:26:25.240 to is a more sustainable chemical 00:26:26.88000:26:26.890 industry and one that can continue 00:26:29.01000:26:29.020 supplying its products to the world 00:26:30.36000:26:30.370 whilst addressing several environmental 00:26:32.46000:26:32.470 challenges including aspects of the 00:26:34.95000:26:34.960 United Nations sustainable development 00:26:36.96000:26:36.970 goals sorry and add the sustainable 00:26:42.66000:26:42.670 development goals of the UN 00:26:44.49000:26:44.500 some of them are more obviously relevant 00:26:46.50000:26:46.510 to the I 00:26:47.17000:26:47.180 ASD g7 concerning renewable energy and 00:26:50.23000:26:50.240 SG 13 of climate action are obvious ones 00:26:53.62000:26:53.630 for us to consider in analyses given 00:26:56.44000:26:56.450 that remit and energy and the energy 00:26:59.14000:26:59.150 sector accounting for the majority of 00:27:01.14000:27:01.150 anthropogenic co2 emissions but we also 00:27:04.24000:27:04.250 wanted to cast the net a bit wider 00:27:05.70000:27:05.710 following the principles of the IEA 00:27:08.47000:27:08.480 sustainable development scenario and 00:27:10.36000:27:10.370 adopt a broader definition of 00:27:12.19000:27:12.200 sustainability in this analysis that 00:27:14.98000:27:14.990 translates into the consideration of air 00:27:16.93000:27:16.940 pollutants water pollutants and water 00:27:18.97000:27:18.980 demand sorry and and in the clean 00:27:25.54000:27:25.550 technology scenario these environmental 00:27:28.06000:27:28.070 impacts add dramatically decrease air 00:27:31.00000:27:31.010 pollution decreases by around 85% water 00:27:33.79000:27:33.800 pollutants by more than 90 percent and 00:27:35.71000:27:35.720 co2 emissions of forty five percent 00:27:37.24000:27:37.250 lower than nail today the next few 00:27:40.60000:27:40.610 slides take a closer look at this 00:27:42.13000:27:42.140 scenario and what needs to be done to 00:27:43.72000:27:43.730 facilitate these obvious environmental 00:27:46.24000:27:46.250 benefits so the first element of context 00:27:51.10000:27:51.110 to look at in the CTS is demand for 00:27:52.72000:27:52.730 primary chemicals and the role of 00:27:54.37000:27:54.380 recycling in reducing the demand for 00:27:57.52000:27:57.530 virgin production and Devon demand for 00:28:01.75000:28:01.760 plastics can be satisfied either by 00:28:03.39000:28:03.400 primary production and through oil and 00:28:06.10000:28:06.110 gas or by recycling and reusing plastic 00:28:08.59000:28:08.600 products found in waste streams a so 00:28:12.16000:28:12.170 called secondary production the purple 00:28:15.70000:28:15.710 bars on this graph and the gray one for 00:28:18.10000:28:18.110 2017 and show the amount of plastic 00:28:21.91000:28:21.920 produced by secondary production and in 00:28:25.21000:28:25.220 the CTS and the blue bars show the RTS 00:28:28.42000:28:28.430 values and the red dots show that the 00:28:33.79000:28:33.800 average resin recycling rates for all 00:28:37.15000:28:37.160 resins globally and the ranges within 00:28:39.31000:28:39.320 those for each region and and finally 00:28:42.91000:28:42.920 the green bars on the right show the 00:28:44.41000:28:44.420 primary chemical savings that are 00:28:46.12000:28:46.130 derived from this dramatic increase in 00:28:48.49000:28:48.500 recycling that takes place in the CTS 00:28:50.55000:28:50.560 collection rates in the CGS for plastic 00:28:53.02000:28:53.030 recycling more than tripled between 2017 00:28:55.09000:28:55.100 and 2050 during nearly tripled between 00:28:57.37000:28:57.380 2017 and 2050 and this results in around 00:29:00.07000:29:00.080 70 million 00:29:00.89000:29:00.900 tons of primary chemical savings and/or 00:29:03.47000:29:03.480 around half of today's plastic Korean 00:29:05.18000:29:05.190 production being taken place by via 00:29:08.09000:29:08.100 secondary routes so having touched on 00:29:10.85000:29:10.860 this demand context and recycling I 00:29:13.04000:29:13.050 wanted to just pass back titanium to go 00:29:16.07000:29:16.080 through the broader context of oil 00:29:17.45000:29:17.460 demand in the CGS thanks Peter 00:29:22.21000:29:22.220 classically cycling has also impact on 00:29:25.70000:29:25.710 oil demand for petrochemical feedstock 00:29:27.91000:29:27.920 higher recycling in the CTS reduced oil 00:29:31.61000:29:31.620 demand for Peter stop by around 2.4 00:29:34.28000:29:34.290 million barrels per day by 2050 however 00:29:37.88000:29:37.890 with this reduction oil demand for 00:29:41.06000:29:41.070 chemical feedstock still grows by 3.6 00:29:44.39000:29:44.400 million barrels per day in this scenario 00:29:46.52000:29:46.530 by 2050 00:29:47.63000:29:47.640 in fact the share of chemical feedstock 00:29:50.87000:29:50.880 in total demand in the city s is much 00:29:53.48000:29:53.490 higher than in the RTS this is because 00:29:57.98000:29:57.990 oil demand for other sectors such as 00:30:00.41000:30:00.420 transport decreased quite a lot in this 00:30:02.66000:30:02.670 scenario why petrochemicals keep on 00:30:05.30000:30:05.310 growing 00:30:05.95000:30:05.960 so by 2050 petrochemicals account for 00:30:10.13000:30:10.140 almost 26% of global total much higher 00:30:13.79000:30:13.800 than the 16% in ideas this changing 00:30:18.89000:30:18.900 sectoral oil demand prospect also have 00:30:21.41000:30:21.420 an impact on the composition of demand 00:30:24.11000:30:24.120 for individual oil product in this 00:30:26.90000:30:26.910 scenario there is a Peter bishops 00:30:29.09000:30:29.100 document toward the writer product such 00:30:31.58000:30:31.590 as NASA or LPG this causes challenges 00:30:35.57000:30:35.580 for Pyro's meaning this new demand 00:30:39.08000:30:39.090 pattern is not easy because many of the 00:30:42.38000:30:42.390 refining facilities are equipped to 00:30:44.33000:30:44.340 produce a broad range of product not 00:30:46.85000:30:46.860 just like the product may be processing 00:30:50.06000:30:50.070 more lighter crude could be a starting 00:30:52.04000:30:52.050 point to address these challenges and 00:30:54.40000:30:54.410 deeper refining and petrochemical 00:30:56.89000:30:56.900 integration can gain more prominence in 00:31:00.47000:31:00.480 this type of scenario could lead to 00:31:03.35000:31:03.360 chemical project is an example of a 00:31:05.54000:31:05.550 technology that may be adapted more in 00:31:07.85000:31:07.860 this context 00:31:11.19000:31:11.200 let me just reinforce the new weird many 00:31:14.55000:31:14.560 dynamics with an interesting finding 00:31:16.41000:31:16.420 from our CTS energies here we have some 00:31:21.39000:31:21.400 regional per capita figure who oil 00:31:23.94000:31:23.950 demand to load passenger transport and 00:31:25.95000:31:25.960 for plastic consumption today in the 00:31:29.55000:31:29.560 United States and the European Union or 00:31:31.91000:31:31.920 capitalism and for load passenger 00:31:33.96000:31:33.970 transport is between two to five times 00:31:36.21000:31:36.220 as much as four plastic consumption in 00:31:39.51000:31:39.520 China in India the ratio is smaller but 00:31:42.90000:31:42.910 still load passenger transport still 00:31:45.63000:31:45.640 eclipsed plastic consumption an 00:31:49.25000:31:49.260 interesting picture of the CPS is in all 00:31:52.83000:31:52.840 these regions per capita oil demand 00:31:55.56000:31:55.570 plastic consumption over tapes that Co 00:31:58.74000:31:58.750 passenger transport by 2050 00:32:01.52000:32:01.530 petrochemicals therefore becomes the 00:32:04.14000:32:04.150 largest sector of oil demand by 2050 in 00:32:07.59000:32:07.600 this scenario this contrasting petals 00:32:11.13000:32:11.140 growing plastic meant only one end and 00:32:13.49000:32:13.500 declining transport demand on the other 00:32:16.05000:32:16.060 hand does not bode well with today's 00:32:18.99000:32:19.000 refining with these models the finest 00:32:21.90000:32:21.910 used on repeat by selling transporters 00:32:24.48000:32:24.490 and in many cases they make losses by 00:32:27.39000:32:27.400 selling petrochemical Podesta however 00:32:30.30000:32:30.310 this traditional petrol may knock wood 00:32:33.18000:32:33.190 in this type of scenario requiring 00:32:36.57000:32:36.580 refiners to find a new operational model 00:32:39.30000:32:39.310 a new market environment now my 00:32:42.27000:32:42.280 colleagues here will explain some of the 00:32:44.37000:32:44.380 possible measures to reduce emissions in 00:32:46.50000:32:46.510 chemical sector thanks time so despite 00:32:52.11000:32:52.120 the continuing oil graphs that tell you 00:32:55.50000:32:55.510 in outline there and emissions declined 00:32:58.14000:32:58.150 by about 5% in the CTS by 2050 00:33:01.76000:33:01.770 relative to today's levels and this 00:33:08.34000:33:08.350 represents a 60 percent decline relative 00:33:10.17000:33:10.180 to the RTS in 2050 or 25% cumulative 00:33:13.98000:33:13.990 reduction over the analysis period 00:33:16.31000:33:16.320 how can world demand keep rising while 00:33:18.81000:33:18.820 emissions undergo rapid declines I might 00:33:21.63000:33:21.640 hear you ask one one reason is the 00:33:23.91000:33:23.920 consumption 00:33:24.54000:33:24.550 as beach doc and as Araceli outlined in 00:33:27.72000:33:27.730 the first section molecules of oil and 00:33:30.42000:33:30.430 gas become embedded in the chemical 00:33:32.04000:33:32.050 products and are released either 00:33:33.36000:33:33.370 downstream or embedded more permanently 00:33:35.84000:33:35.850 the remainder of the emissions 00:33:37.77000:33:37.780 reductions that are achieved in the OTS 00:33:39.33000:33:39.340 and are done so via a variety of leaders 00:33:42.27000:33:42.280 levers so we've got I think I'll now 00:33:47.88000:33:47.890 hide Rider an overview of these of the 00:33:50.01000:33:50.020 main categories of these we've grouped 00:33:52.17000:33:52.180 the emissions reductions that take place 00:33:53.70000:33:53.710 in the CGS under five categories CC us 00:33:57.03000:33:57.040 coal to natural gas B deducts energy 00:34:00.15000:34:00.160 efficiency plastic recycling and the use 00:34:02.67000:34:02.680 of alternative feedstocks CC us does the 00:34:06.15000:34:06.160 heavy lifting in the in the on the 00:34:08.01000:34:08.020 emissions front and the chemical sector 00:34:09.96000:34:09.970 this is because the chemical sector 00:34:11.49000:34:11.500 resident represents some of the lowest 00:34:13.20000:34:13.210 cost options for CC us in the energy 00:34:15.21000:34:15.220 system and it's hard for alternative 00:34:17.46000:34:17.470 feedstocks such as bio energy and 00:34:19.02000:34:19.030 renewable hydrogen to compete with this 00:34:20.66900:34:20.679 technology in most regions energy 00:34:23.43000:34:23.440 efficiency both from a continuous 00:34:25.53000:34:25.540 process energy intensity improvement 00:34:27.24000:34:27.250 point of view and because of shifts have 00:34:29.58000:34:29.590 fundamentally more efficient process 00:34:30.96000:34:30.970 routes this lever delivers around a 00:34:33.78000:34:33.790 quarter of emission savings in the CTS 00:34:35.66900:34:35.679 relative to the RTS call to get natural 00:34:39.45000:34:39.460 gas feedstock shifts account for another 00:34:41.07000:34:41.080 quarter and this mainly relates to the 00:34:43.83000:34:43.840 large coal based chemical industry in 00:34:45.57000:34:45.580 China which continued to evolve in the 00:34:48.00000:34:48.010 RCS that is dramatically shifted towards 00:34:51.72000:34:51.730 gas and some CCS in these in the CGS 00:34:56.21000:34:56.220 ambitious increases in recycling deliver 00:34:58.92000:34:58.930 comparatively few savings but are still 00:35:01.47000:35:01.480 an important component of the CGS for 00:35:03.30000:35:03.310 other reasons that I'll come back to in 00:35:04.86000:35:04.870 a couple of slides time and and just to 00:35:07.98000:35:07.990 highlight that of course more details 00:35:09.45000:35:09.460 much more details all of these levers 00:35:11.64000:35:11.650 can be found in the report just to zoom 00:35:16.17000:35:16.180 in on the CC us context and the chemical 00:35:21.33000:35:21.340 sector 00:35:21.72000:35:21.730 hosts them and the well host the largest 00:35:24.36000:35:24.370 CCU application in the world by far at 00:35:26.85000:35:26.860 the moment which is that and co2 being 00:35:29.64000:35:29.650 used as a feedstock for urea and this 00:35:31.62000:35:31.630 co2 is usually sourced from the 00:35:33.57000:35:33.580 concentrated co2 streams that leave 00:35:36.09000:35:36.100 ammonia 00:35:37.39000:35:37.400 and facilities and while this only 00:35:39.88000:35:39.890 represents a temporary storage of co2 as 00:35:42.88000:35:42.890 it's released when your reer decomposes 00:35:45.10000:35:45.110 in the agriculture sector it's still an 00:35:47.29000:35:47.300 important consideration in the modeling 00:35:48.91000:35:48.920 because we need to take account of that 00:35:50.83000:35:50.840 co2 that can no longer be captured for 00:35:53.20000:35:53.210 permanent storage in the current 00:35:54.70000:35:54.710 structure by 2050 though in capture for 00:35:58.48000:35:58.490 permanent storage over take CTU without 00:36:01.84000:36:01.850 around 220 megatons of co2 being 00:36:04.63000:36:04.640 captured annually from a mixture of 00:36:06.49000:36:06.500 concentrated and daily streams and this 00:36:10.09000:36:10.100 together with the utilized emissions 00:36:11.86000:36:11.870 means that around 35% of emissions 00:36:14.05000:36:14.060 generated in the secretary are being 00:36:15.43000:36:15.440 either captured or utilized in the CTS 00:36:18.31000:36:18.320 by 2050 now once it is come to one of 00:36:25.21000:36:25.220 the key environmental problems that is 00:36:27.64000:36:27.650 garnering a lot of attention around the 00:36:28.90000:36:28.910 world at the moment and that's plastic 00:36:30.52000:36:30.530 waste leakage into the world's seas and 00:36:32.59000:36:32.600 oceans and this graph shows the 00:36:35.34000:36:35.350 cumulative and annual plastic waste 00:36:37.87000:36:37.880 leakage in each of our scenarios and and 00:36:40.72000:36:40.730 just to provide a bit of background on 00:36:42.52000:36:42.530 this topic for those of you who are and 00:36:45.30000:36:45.310 interested when supposed of improperly 00:36:48.04000:36:48.050 plastic products can any and they do 00:36:50.53000:36:50.540 currently make their way into waterways 00:36:52.18000:36:52.190 and eventually into the ocean when they 00:36:54.34000:36:54.350 are broken down into small plastics by 00:36:56.35000:36:56.360 small micro plastics by sunlight and 00:36:58.66000:36:58.670 mini fish and other animals can mistake 00:37:01.36000:37:01.370 them for food and ingest them in the RTS 00:37:04.51000:37:04.520 and our base scenario with no firm and 00:37:06.94000:37:06.950 globally coordinated commitments to 00:37:09.10000:37:09.110 reform poor or non-existent waste 00:37:10.90000:37:10.910 management practices in many countries 00:37:12.57000:37:12.580 cumulative volumes of plastic waste in 00:37:14.83000:37:14.840 the world's ocean increase a tenfold and 00:37:17.34000:37:17.350 and this tracks the grossing in plastic 00:37:20.74000:37:20.750 production in the CCS however the rapid 00:37:23.59000:37:23.600 and broad-based improvements across the 00:37:25.33000:37:25.340 globe in waste management to facilitate 00:37:27.49000:37:27.500 a near tripling and recycling collection 00:37:29.29000:37:29.300 rates and this lays the groundwork for 00:37:31.60000:37:31.610 more than having cumulative ocean bound 00:37:33.73000:37:33.740 plastic waste relative to the RTS and 00:37:36.78000:37:36.790 this does not take into account any 00:37:39.27000:37:39.280 effort to remove plastic waste from the 00:37:41.83000:37:41.840 ocean once it has entered and many of 00:37:45.28000:37:45.290 which is currently being looked at and 00:37:47.11000:37:47.120 will likely be needed to come 00:37:49.63000:37:49.640 these efforts in the future now we'd 00:37:55.18000:37:55.190 like to look at the investment side of 00:37:57.70000:37:57.710 the coin for the ggs and our analysis of 00:38:01.15000:38:01.160 this topic was focused on primary 00:38:04.77900:38:04.789 chemical production and it shows that 00:38:06.27900:38:06.289 the CTS can be pursued cost-effectively 00:38:09.13000:38:09.140 from cost-effectively from an investment 00:38:10.99000:38:11.000 standpoint and recycling and coal to gas 00:38:14.20000:38:14.210 feedstock shifts are two components that 00:38:17.34900:38:17.359 provide savings in the CTS and this is 00:38:21.60900:38:21.619 this recycling because lower levels of 00:38:24.70000:38:24.710 primary chemical production avoids the 00:38:26.92000:38:26.930 need for the construction of several 00:38:28.69000:38:28.700 expensive steam crackers and other 00:38:30.25000:38:30.260 equipment in the sector and then 00:38:33.02900:38:33.039 processes that utilize a lighter feeds 00:38:35.74000:38:35.750 off than coal not a solid feedstock tend 00:38:38.10900:38:38.119 to be less capital intensive and these 00:38:40.77900:38:40.789 both both of these aspects of the 00:38:43.35900:38:43.369 scenario provides savings that more than 00:38:46.12000:38:46.130 offset the added investments needed for 00:38:49.26900:38:49.279 carbon capture and alternative feedstock 00:38:51.90000:38:51.910 processing equipment overall the 00:38:54.94000:38:54.950 cumulative investment in the CTS is 00:38:56.89000:38:56.900 around two hundred billion less than in 00:38:58.80900:38:58.819 the RTS and now I'd like to move to a an 00:39:15.67000:39:15.680 analysis that we did on the side of the 00:39:18.33900:39:18.349 CTS and we call it from beyond the CTS 00:39:20.98000:39:20.990 but it's it's not part of our scenario 00:39:22.98000:39:22.990 scenario results and and it's more of a 00:39:27.94000:39:27.950 what-if analysis that we performed for a 00:39:29.98000:39:29.990 primary chemical production so if we 00:39:34.21000:39:34.220 wanted to ask whether if feedstocks were 00:39:36.13000:39:36.140 produced from a carbon neutral energy 00:39:37.59900:39:37.609 source and what would the benefits be 00:39:40.08900:39:40.099 and what would the resultant 00:39:43.25900:39:43.269 implications be for the for the energy 00:39:45.46000:39:45.470 system and and the benefits are that you 00:39:49.05900:39:49.069 can eliminate some of the downstream 00:39:50.44000:39:50.450 emissions that came into talked about 00:39:52.69000:39:52.700 and that results when the molecules will 00:39:56.10900:39:56.119 and gas in the products are released via 00:39:58.59900:39:58.609 some form of use or disposal technique 00:40:02.43000:40:02.440 and and the other thing is that fossil 00:40:06.03000:40:06.040 fuels theoretically by these pathways 00:40:08.25000:40:08.260 can be removed from the sector all 00:40:09.78000:40:09.790 together and firstly we listed a 00:40:12.51000:40:12.520 bioenergy only pathway and and we dis 00:40:17.33900:40:17.349 entails producing ammonia and methyl a 00:40:19.10900:40:19.119 methanol and ethylene directly from 00:40:21.08900:40:21.099 biomass ethylene in Evelyn's case this 00:40:23.94000:40:23.950 would be from bio ethanol with propylene 00:40:26.13000:40:26.140 and aromatics being produced by a 00:40:27.78000:40:27.790 methanol to olefin and methanol to 00:40:29.49000:40:29.500 aromatics processes second we looked at 00:40:32.25000:40:32.260 an electricity only pathway which 00:40:33.99000:40:34.000 entails producing ammonia and methanol 00:40:36.56900:40:36.579 directly by our electrolysis and then 00:40:38.81900:40:38.829 olefins and aromatics all olefins and 00:40:41.09900:40:41.109 aromatics via methanol via MTO and MTA 00:40:45.26000:40:45.270 the results are stuck and by 2050 the 00:40:48.56900:40:48.579 bioenergy pathway requires nearly eight 00:40:50.73000:40:50.740 times the bio energy demand for all 00:40:52.53000:40:52.540 industry in a similar low-carbon pathway 00:40:54.93000:40:54.940 in the electricity pathway the demand 00:40:57.30000:40:57.310 for electricity exceeds that for all 00:40:59.19000:40:59.200 industry by 25 percent again in a 00:41:01.71000:41:01.720 similar low-carbon pathway by 2050 this 00:41:05.16000:41:05.170 is significant as industry as a large 00:41:07.85900:41:07.869 electricity consumer as you know these 00:41:11.09900:41:11.109 figures are all even higher when 00:41:12.30000:41:12.310 chemicals produced in refineries 00:41:13.58900:41:13.599 included as in such a world it is 00:41:16.29000:41:16.300 questionable as to whether refineries 00:41:17.73000:41:17.740 would be playing exactly the same role 00:41:20.27000:41:20.280 there are other challenges of these 00:41:22.31900:41:22.329 pathways such as increased water demand 00:41:24.59900:41:24.609 and where the carbon source comes from 00:41:27.51000:41:27.520 for the electricity pathway and for 00:41:29.70000:41:29.710 methanol but this is explored in more 00:41:32.22000:41:32.230 detail in the in the report I would like 00:41:39.90000:41:39.910 to finish by describing the and the 00:41:43.77000:41:43.780 policy recommendations that we came to 00:41:46.50000:41:46.510 in the CTS the top 10 among our various 00:41:49.44000:41:49.450 policy aspects that we discussed in the 00:41:51.54000:41:51.550 report and because the CGS won't come by 00:41:54.42000:41:54.430 had come about by itself and it will 00:41:56.84900:41:56.859 need to support from a variety of 00:41:58.14000:41:58.150 stakeholders across the value chain 00:41:59.64000:41:59.650 we've divided our policy recommendations 00:42:02.28000:42:02.290 into two categories firstly those 00:42:04.31900:42:04.329 related to the production of chemicals 00:42:05.97000:42:05.980 and secondly those related to the use 00:42:08.43000:42:08.440 and disposal of chemical products and so 00:42:10.95000:42:10.960 the first recommendation that you have 00:42:12.59900:42:12.609 here and is associated with production 00:42:14.91000:42:14.920 and it's 00:42:16.35000:42:16.360 directly stimulate R&D of sustainable 00:42:19.95000:42:19.960 chemic chemical production routes and 00:42:21.45000:42:21.460 limit associated risks with these with 00:42:24.39000:42:24.400 these R&D projects and as an example 00:42:27.15000:42:27.160 this would be providing direct research 00:42:28.98000:42:28.990 funding or providing low-interest loans 00:42:31.23000:42:31.240 for demonstration products projection F 00:42:34.29000:42:34.300 so it projects and making the 00:42:37.14000:42:37.150 environment generally lower risk to 00:42:39.84000:42:39.850 carry out new ideas and best to get new 00:42:41.88000:42:41.890 ideas the second is to encourage robust 00:42:44.70000:42:44.710 benchmarking schemes for energy 00:42:46.17000:42:46.180 performance and emissions and the 00:42:48.21000:42:48.220 remaining three related recommendations 00:42:51.87000:42:51.880 that apply to the energy system more 00:42:53.43000:42:53.440 broadly CX is doing effective regulatory 00:42:57.69000:42:57.700 actions to limit dat emission and 00:43:00.20000:43:00.210 regulating and enforcing stringent air 00:43:02.46000:43:02.470 quality standards and eliminating 00:43:05.31000:43:05.320 mechanisms that skew the market value of 00:43:07.38000:43:07.390 fuels including those that fail to 00:43:09.48000:43:09.490 represent exit analysis the second set 00:43:15.30000:43:15.310 of policy recommendations is five of our 00:43:18.63000:43:18.640 top ten and relate to the use and 00:43:21.72000:43:21.730 disposal phases of chemical products so 00:43:24.69000:43:24.700 they are firstly to reduce our reliance 00:43:26.40000:43:26.410 on single-use plastics other than for 00:43:28.47000:43:28.480 non substitutable functions and improve 00:43:31.98000:43:31.990 waste management practices around the 00:43:33.66000:43:33.670 world raise consumer awareness consumer 00:43:37.65000:43:37.660 awareness about the multiple benefits of 00:43:39.42000:43:39.430 recycling and encourage designers to 00:43:41.73000:43:41.740 deal with better products that take into 00:43:43.20000:43:43.210 account the disposal phase of the 00:43:45.33000:43:45.340 product of at the end of its life and 00:43:47.54000:43:47.550 finally pursue schemes that extend 00:43:50.19000:43:50.200 producer responsibility beyond the 00:43:53.22000:43:53.230 production site and with that I'd like 00:43:56.55000:43:56.560 to hand back to our director max Hilde 00:43:58.47000:43:58.480 to close the presentation thank you and 00:44:01.77000:44:01.780 thank you all I think you had a chance 00:44:04.20000:44:04.210 to get the main features and the main 00:44:07.17000:44:07.180 and Adi analytical work explained in the 00:44:10.32000:44:10.330 slide front by the colleagues so let me 00:44:13.02000:44:13.030 just summarize and maybe draw some 00:44:15.09000:44:15.100 conclusions of that what we call the 00:44:18.36000:44:18.370 appliance pots and shining some light on 00:44:21.57000:44:21.580 that blind spot which i think is a 00:44:24.18000:44:24.190 really very important and well done work 00:44:27.09000:44:27.100 so first of all pet 00:44:29.82900:44:29.839 chemical products are deeply embedded in 00:44:32.79900:44:32.809 our everyday lives they will also play a 00:44:35.89000:44:35.900 key role in many components of the 00:44:38.25900:44:38.269 energy transition like on wind turbines 00:44:40.77900:44:40.789 and solar and others so they have a key 00:44:43.93000:44:43.940 role to play also in the future secondly 00:44:48.27900:44:48.289 as the second conclusion petrochemicals 00:44:51.64000:44:51.650 are the largest driver of global oil 00:44:54.09900:44:54.109 consumption in the future accounting for 00:44:57.57900:44:57.589 more than a third of the growth to 2030 00:45:00.57900:45:00.589 and nearly half to 2050 the main players 00:45:06.40000:45:06.410 in that game are the China the United 00:45:10.71900:45:10.729 States and the Middle East who are 00:45:13.42000:45:13.430 leading the growth in the petrochemicals 00:45:15.93000:45:15.940 production and as you also saw as one of 00:45:21.30900:45:21.319 the conclusion the production use and 00:45:24.78900:45:24.799 disposal of chemicals take an 00:45:27.33900:45:27.349 environmental toll but achievable and 00:45:30.30900:45:30.319 cost effective steps can be taken to 00:45:33.16000:45:33.170 make these more sustainable and I think 00:45:35.55900:45:35.569 that was well explained in the scenario 00:45:39.00900:45:39.019 in the sustainable scenario and my last 00:45:42.54900:45:42.559 conclusion is that analysis of this 00:45:46.15000:45:46.160 energy blind spots goes hand-in-hand 00:45:49.08900:45:49.099 with the IEA a general policy on opening 00:45:52.95900:45:52.969 a doors to global engagement so there 00:45:56.17000:45:56.180 will be more to come after we already 00:45:58.80900:45:58.819 had a look at the trucks air 00:46:00.57900:46:00.589 conditioners modern bioenergy and now 00:46:03.54900:46:03.559 the petrochemical which is a key key one 00:46:05.85900:46:05.869 so more will come with that I think you 00:46:08.89000:46:08.900 can conclude our presentation and we 00:46:12.09900:46:12.109 have 15 minutes left if you have any 00:46:14.76900:46:14.779 questions and the team is here to 00:46:17.48900:46:17.499 hopefully can answer all of the 00:46:19.93000:46:19.940 questions thank you legend so now that 00:46:27.51900:46:27.529 the floor is open for questions they're 00:46:29.46900:46:29.479 receiving questions to the through the 00:46:31.35900:46:31.369 webinar software so feel free to send 00:46:33.88000:46:33.890 those we'll try to address all of these 00:46:36.60900:46:36.619 in the remaining time that we have and 00:46:39.21000:46:39.220 in any case all of those gets recorded 00:46:41.94000:46:41.950 and will be able to respond back to you 00:46:44.10000:46:44.110 by email if we ran out of time I just 00:46:47.64000:46:47.650 wanted to read to confirm you as well 00:46:50.13000:46:50.140 that this session is being recorded 00:46:51.96000:46:51.970 so we'll we'll make it available on the 00:46:54.03000:46:54.040 website as well together with the rest 00:46:56.10000:46:56.110 of materials related to the to the 00:46:58.68000:46:58.690 reports on the ia website seems this 00:47:03.24000:47:03.250 myth nice you could find the press 00:47:05.79000:47:05.800 release the main reports and some mini 00:47:09.27000:47:09.280 extracts as the secretary summary and 00:47:11.82000:47:11.830 some of the some visual information on 00:47:14.04000:47:14.050 the key findings as well the executive 00:47:16.62000:47:16.630 summary is a bi-level also in Chinese 00:47:19.20000:47:19.210 and Arabic for for stakeholders to 00:47:22.68000:47:22.690 consult this and from today onwards 00:47:25.38000:47:25.390 we'll start a Rosh Hashanah 00:47:27.42000:47:27.430 that's a dissemination program to visit 00:47:30.54000:47:30.550 different regions and engage with 00:47:33.51000:47:33.520 stakeholders around around the world as 00:47:37.74000:47:37.750 much as we can renting from government 00:47:40.53000:47:40.540 industries and also Richards 00:47:41.91000:47:41.920 associations so please contact us if you 00:47:44.97000:47:44.980 are interested in learning more about 00:47:47.04000:47:47.050 this this ro show and if there are 00:47:48.90000:47:48.910 opportunities that do you think would be 00:47:52.08000:47:52.090 worth while exploring which and what we 00:47:54.09000:47:54.100 have already planned and with with that 00:47:57.90000:47:57.910 i'ma just a service plan is among the of 00:48:00.33000:48:00.340 the questions when the first once we've 00:48:03.96000:48:03.970 received was related to the use of co2 00:48:07.41000:48:07.420 for urea so the question was when 00:48:11.37000:48:11.380 utilized in waste co2 for urea 00:48:13.50000:48:13.510 production did you consider the end-user 00:48:15.42000:48:15.430 missions where the spheres who 00:48:17.34000:48:17.350 eventually is emitted anyway it is 00:48:19.56000:48:19.570 important distinction in co2 account and 00:48:22.85000:48:22.860 accountability and so so yes we we 00:48:27.00000:48:27.010 explore this area there is a specific 00:48:28.77000:48:28.780 section in the report looking at 00:48:31.04000:48:31.050 downstream emissions from the chemical 00:48:33.51000:48:33.520 sector and especially on this value 00:48:35.97000:48:35.980 chain that it was mentioned so how some 00:48:39.87000:48:39.880 of the emissions generated in the Monier 00:48:42.00000:48:42.010 production are used as feedstock for 00:48:43.86000:48:43.870 urea production which then leads into 00:48:46.14000:48:46.150 some nitrogen based fertilizers that 00:48:49.47000:48:49.480 when they are you 00:48:51.19000:48:51.200 and hydrated in dairy culture sector 00:48:53.17000:48:53.180 than as a consequence that you to get 00:48:56.28900:48:56.299 released back so there's some there's 00:48:58.90000:48:58.910 little information on that and 00:49:00.19000:49:00.200 discussion in the report I in terms of 00:49:02.85900:49:02.869 accountability certainly we think that 00:49:05.20000:49:05.210 into account at the energy system level 00:49:07.24000:49:07.250 and when we have reported figures today 00:49:10.69000:49:10.700 around the co2 emissions related to the 00:49:14.23000:49:14.240 chemical sector we were referring to one 00:49:16.48000:49:16.490 or direct co2 emissions and that those 00:49:19.18000:49:19.190 would exclude those co2 emissions for 00:49:20.98000:49:20.990 instance that would be releasing the in 00:49:23.71000:49:23.720 the use phase of this product but 00:49:25.53900:49:25.549 certainly those are accounted in the 00:49:27.19000:49:27.200 whole let's say context of the system 00:49:30.01000:49:30.020 level when in the trash showing the cost 00:49:47.38000:49:47.390 of Pitkin production and entry or 00:49:50.17000:49:50.180 methanol to olefin based was shown as 00:49:53.07900:49:53.089 the cheaper than nasa based chemicals 00:49:55.00000:49:55.010 that is taken to account the cost of 00:49:57.37000:49:57.380 converting coal or natural gas into 00:49:59.28900:49:59.299 methanol as well so on that question the 00:50:07.32900:50:07.339 the assumption about the feedstock is 00:50:09.46000:50:09.470 the average price for methanol bought at 00:50:13.42000:50:13.430 the merchant merchant methanol purchased 00:50:16.78000:50:16.790 that year and used as a feedstock 00:50:19.31900:50:19.329 directly so it wouldn't be their capex 00:50:21.57900:50:21.589 of the of the methanol plant or anything 00:50:24.19000:50:24.200 like that that's included just the the 00:50:25.93000:50:25.940 end price market price for methanol 00:50:30.45000:50:30.460 great 00:50:36.06900:50:36.079 next question given massive problems 00:50:39.30900:50:39.319 with disposal with incineration and with 00:50:42.78900:50:42.799 energy recovery be a better option than 00:50:44.95000:50:44.960 land field or other uncontrolled 00:50:47.23000:50:47.240 disposal options certainly yes we have 00:50:52.66000:50:52.670 an extensive discussion as well in the 00:50:54.43000:50:54.440 report around different disposal options 00:50:57.84900:50:57.859 for for plastic waste and certainly the 00:51:01.56900:51:01.579 trend that we see in 00:51:03.60900:51:03.619 countries that I put in a bit more 00:51:04.71900:51:04.729 attention towards that moving towards 00:51:07.32900:51:07.339 greater recycling and more use of 00:51:11.46900:51:11.479 disgusting waste for energy recovery and 00:51:13.53900:51:13.549 trying to minimize and release as much 00:51:15.48900:51:15.499 as possible even banned in some cases 00:51:17.67000:51:17.680 landfill in as an antenna it's just 00:51:21.30900:51:21.319 certainly that's that the case as well 00:51:24.30900:51:24.319 in in our every sort of our analysis to 00:51:28.85900:51:28.869 and we've had a query to clarify an or 00:51:32.34900:51:32.359 just to go into a bit more detail on the 00:51:33.91000:51:33.920 graph on slide 34 and and this so just 00:51:39.09900:51:39.109 to go by Marv I bar on this graph on the 00:51:42.23900:51:42.249 2017 dark blue bar on the furthest left 00:51:45.54900:51:45.559 of the diagram we have the current 00:51:48.64000:51:48.650 feedstock and sorry we have the feed dog 00:51:52.74900:51:52.759 and process energy consumption the 00:51:54.19000:51:54.200 chemical settle provided by fossil fuels 00:51:56.52900:51:56.539 today and and then we will in 2017 for 00:52:01.23900:52:01.249 the bioenergy pathway and electricity 00:52:03.13000:52:03.140 pathway this would be assessing the same 00:52:05.01900:52:05.029 demand that either by a solely by a 00:52:07.71900:52:07.729 bioenergy or by electricity and and this 00:52:11.07900:52:11.089 would be very including process energy 00:52:12.99900:52:13.009 consumption and the dashed bars above 00:52:16.53900:52:16.549 each of the colored bars orange and 00:52:20.31900:52:20.329 green bars show add in the requirements 00:52:24.70000:52:24.710 for producing all the chemicals that are 00:52:27.24900:52:27.259 projected to be produced in refineries 00:52:29.41000:52:29.420 and which the propylene and BTX that 00:52:33.51900:52:33.529 currently comes from refineries we 00:52:34.90000:52:34.910 project a portion of that will continue 00:52:37.26900:52:37.279 to be provided by refineries and so 00:52:39.43000:52:39.440 these - bars show the additional energy 00:52:42.24900:52:42.259 requirements that would be required in 00:52:44.10900:52:44.119 each pathway and were were these 00:52:47.20000:52:47.210 scenarios to to take place now the 00:52:51.09900:52:51.109 reason why do we do that is because we 00:52:52.69000:52:52.700 see a world in which you know in this 00:52:56.22900:52:56.239 scenario fossil fuels will get to be 00:52:57.96900:52:57.979 completely phased out of being used as 00:53:00.03900:53:00.049 food Sadat's then it would be unlikely 00:53:01.77900:53:01.789 that refineries would be operating in 00:53:03.91000:53:03.920 the same way I should stress that 00:53:05.68000:53:05.690 although this graph takes its production 00:53:09.24900:53:09.259 projections from the CTS 00:53:10.95900:53:10.969 from the clean technologies - no it is 00:53:13.87000:53:13.880 not part of the CGS this is a side very 00:53:17.04000:53:17.050 analysis that we did a what-if question 00:53:19.29000:53:19.300 if you like there's another question 00:53:23.46000:53:23.470 around one mentioning what does it bars 00:53:26.52000:53:26.530 assume that one on the rapture in the 00:53:29.01000:53:29.020 various regions and the production of 00:53:31.26000:53:31.270 petrochemicals and feedstock demand how 00:53:33.84000:53:33.850 did you explain the sisters we manage 00:53:35.43000:53:35.440 lower than production so I think in this 00:53:39.12000:53:39.130 case it may be the fix that has been 00:53:48.84000:53:48.850 shown in in MPA units with primary 00:53:52.35000:53:52.360 chemical production has been shown in 00:53:53.79000:53:53.800 megatons so the units are not comparable 00:53:57.93000:53:57.940 directly and I mean that may be part of 00:54:01.41000:54:01.420 the of the confusion there but those are 00:54:05.25000:54:05.260 related to I mean are shown in different 00:54:07.89000:54:07.900 units and another question is about 00:54:15.24000:54:15.250 whether in electricity scenarios do we 00:54:18.00000:54:18.010 consider the cost of capturing co2 I'm 00:54:22.95000:54:22.960 not I'm not quite sure if that question 00:54:25.83000:54:25.840 refers to have to the variant that the 00:54:28.62000:54:28.630 what-if analysis that's better describes 00:54:30.75000:54:30.760 around what would be the impact on 00:54:33.24000:54:33.250 electricity Romantics primary chemical 00:54:35.04000:54:35.050 collections are going to be completely 00:54:37.35000:54:37.360 produced from electrolytic hydrogen and 00:54:40.70000:54:40.710 in that case yeah I mean we basically 00:54:45.95000:54:45.960 could assume in that type of assessment 00:54:49.05000:54:49.060 that that electricity and that would be 00:54:51.54000:54:51.550 demanded should come from renewable or 00:54:54.00000:54:54.010 low carbon sources so to make the 00:54:56.52000:54:56.530 fullest a sustainable gain from that 00:55:00.38000:55:00.390 process with compared to other two other 00:55:02.79000:55:02.800 alternatives and possibly if if the 00:55:05.16000:55:05.170 question is in reference to the co2 it 00:55:07.20000:55:07.210 will be required speed stock for 00:55:08.82000:55:08.830 methanol and for the methanol is an 00:55:11.19000:55:11.200 intermediate to olefins and aromatics 00:55:13.58000:55:13.590 then notice this co2 would have to be 00:55:16.38000:55:16.390 captured in other sectors and it would 00:55:19.08000:55:19.090 have to be captured from other 00:55:21.69000:55:21.700 industrial sectors if they were they 00:55:23.55000:55:23.560 were not decarbonized by that point the 00:55:25.77000:55:25.780 V we characterize in more detail the 00:55:27.99000:55:28.000 both the co2 and water 00:55:30.44000:55:30.450 so we will be required along these 00:55:32.32900:55:32.339 alongside these feedstock and process 00:55:34.55000:55:34.560 energy needs and so we we can look at 00:55:37.94000:55:37.950 that in more detail in there in the 00:55:39.89000:55:39.900 report spinner I think that there's no 00:55:47.48000:55:47.490 more questions coming in from the moment 00:55:49.63000:55:49.640 as if mentioned please feel free to get 00:55:52.79000:55:52.800 in touch with us and send your questions 00:55:54.89000:55:54.900 around we'll be happy to clarify those 00:55:57.23000:55:57.240 by email or by phone and and yeah I 00:56:01.06900:56:01.079 think take the chance maybe to close it 00:56:03.92000:56:03.930 at this point to thank you all for your 00:56:05.99000:56:06.000 for your participation and the support 00:56:08.30000:56:08.310 for development of the project for those 00:56:10.97000:56:10.980 that were involved and the tech my 00:56:13.25000:56:13.260 colleagues as well and Michelle that's 00:56:14.83900:56:14.849 kindly participated in this webinar as 00:56:19.01000:56:19.020 well so thanks everyone and we hope to 00:56:21.68000:56:21.690 see you soon 00:56:29.45000:56:29.460 you 00:56:32.78000:56:32.790
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